Bitcoin started the week on a rough note, with its price taking a hit of over $3,000 in hours.
After several attempts to reclaim the $98,000 level and possibly reach $100,000, BTC has now fallen below $95,000.
The dip
This decline comes as reports suggest that large Bitcoin investors, the whales have been moving huge amounts of BTC to Binance, likely to cash in on some profits. But don’t panic just yet, there’s a mix of good and bad news here.
Whales play a big role in price movements because they can buy or sell large quantities of Bitcoin in no time, so analysts are keeping a close eye on their activities to gauge potential price shifts.
One particularly large whale accumulated 11,657 BTC, worth over $780 million, between March 14 and October 31 at an average price of $66,953.
With Bitcoin’s surge of about 50% from that entry price, this whale deposited 1,000 BTC to Binance earlier today, possibly signaling a sell-off for a pretty nice profit.
It’s keep dipping
After this move, Bitcoin’s price dropped from over $98,000 to just under $95,000, before making a slight recovery, and now, in the time of writing it still trades below $96,000, which analyst Ali highlighted as essential for maintaining momentum toward the $100K target.
This level is important because over a million Bitcoin addresses hold more than total 950,000 BTC at that average price, creating a strong support zone.
The dippity of the dipping dip
Even though Bitcoin has dipped below that critical support line, Glassnode’s Rafael suggests there’s no need for alarm just yet.
He points out that the relative unrealized profit metric is currently at 0.74, well below the overheated levels that usually signal an incoming price correction.
Historically, when this metric climbs above 0.9, it often leads to immediate pullbacks in price. But not now.
Rafael concluded that since we’re below those overheated levels, there’s room to run, meaning there’s still potential for upside movement.
Whales will likely cashing out and key support levels being tested now, so traders are watching closely.
The coming days will be our sign to see if Bitcoin can stabilize above those important levels or if we’ll witness further declines.
